Article date: 12 March 2008
Norwich Union, the UK's largest insurer, has produced "Capital Gains Tax Budget changes - unravelled", guidance note for advisers which fully explains the changes announced to Capital Gains Tax announced by the chancellor in the Pre Budget Report in October 2007.
The guidance note sets out the key changes affecting CGT and the key considerations of the new tax regime for both advisers and their clients. It also highlights the benefits that life savings products still provide in the new, more complicated market.
David Barral, marketing director of Norwich Union Life, said: "Naturally we are disappointed that the Chancellor has not taken the opportunity in the Budget to address the imbalances of taxation caused by the unintended consequences of its changes to CGT.
"It has introduced uncertainty into the long term savings market for both advisers and their clients. Investment bonds will continue to offer other benefits such as taxefficient withdrawals of up to 5% per annum, and act as an effective solution to reduce inheritance tax when placed into trust However, the changes to CGT will mean that bonds for some customers will be at a disadvantage from a tax point of view compared to other investments.
"‘Capital Gains Tax Budget changes - unravelled' is a guide we are providing to help advisers fully understand the implications of these major changes and provide the best advice for their clients."
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About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.